Arbeitspapier
Bad times, bad jobs? How recessions affect early career trajectories
Workers who enter the labor market during recessions experience lasting earnings losses, but the role of non-pay amenities in either exacerbating or counteracting these losses remains unknown. Using population-scale data from Germany, we find that labor market entry during recessions generates a 6 percent reduction in earnings cumulated over the first 15 years of experience. Implementing a revealed-preference estimator of employer quality that aggregates information from the universe of worker moves across employers, we find that one-quarter of recession-induced earnings losses are compensated for by non-pay amenities. Purely pecuniary estimates can therefore overstate the welfare costs of labor market entry during recessions.
- Sprache
-
Englisch
- Erschienen in
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Series: Working Papers ; No. 22-12
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- Thema
-
Earnings inequality
recessions
non-pay amenities
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Mahajan, Parag
Patki, Dhiren
Stüber, Heiko
- Ereignis
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Veröffentlichung
- (wer)
-
Federal Reserve Bank of Boston
- (wo)
-
Boston, MA
- (wann)
-
2022
- DOI
-
doi:10.29412/res.wp.2022.12
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Mahajan, Parag
- Patki, Dhiren
- Stüber, Heiko
- Federal Reserve Bank of Boston
Entstanden
- 2022